The price of Bitcoin drops below last week’s range as the trading market remains pro-sell. After a brief bull run pushed the cryptocurrency’s price upwards at the start of this week, Bitcoin lost over $300 in value on Tuesday, crushing hopes that a stronger rally will be formed to boost the price further. But while USD value has been dropping slowly over the past few months, Bitcoin network’s hash rate has increased significantly.
According to Investopedia, the hash rate of the network has soared by over 100% in the period of only 4 months, thanks to many new mining operations entering the scene. According to statistics, around $4 billion in mining equipment has been bought since the end of 2017, indicating that there is still a strong interest in the cryptocurrency, although the price has been slow to pick up despite such large-scale investments.
Market Says it’s Selling Time
Bitcoin’s price has dropped down to $6,300, less than three days after climbing to a peak of $6,876.34 on Sunday evening. Looking at the charts, it seems that the price boost over the weekend was made possible by a lowered trading volume, which once increased turned the market into a different direction. Currently, the volume is at $4 billion and slowly dropping while the market cap is slashed when compared to last week, sitting at $109 billion.
Our market analysis show that a bearish sentiment is sweeping over cryptocurrency exchanges, with 8 out of 12 oscillators and all 12 moving averages sending a selling signal. The SMA 100 is still over the SMA 200 on this time-frame, showing there’s still less resistance to the upside, however, the gap between the moving averages is closing, hinting at an increase in bearish pressure. Looking at the daily signals, the $6,800 resistance has been rejected, showing that the downward course is more likely. If the bearish sentiment continues, we could be looking at a drop below $6,000. If the price pushes towards $5,600, you may want to pull out from your trades.
Yuan Bitcoin Trades Drop to 1%
The ban on cryptocurrency trades in the People’s Republic of China has proven to be an effective measure as China’s Yuan (RMB) / BTC trades fall down to 1%. As reported by Express, the central bank in the country recently confirmed that BTC/RMB sales and purchases have plummeted down from a staggering 90% in September last year to a current 1%.
Back in September 2017, China announced a ban on cryptocurrency trades which immediately hit the price of the world’s leading cryptocurrency, causing it to drop over $600 in only four days. The ban was issued due to fears of the local government that it’s losing control over the cryptocurrency market, after the price began to rapidly increase over the course of a few months. The official ban began in February this year, when the PBOC (People’s Bank of China) announced it was banning ICO campaigns and cryptocurrency exchanges based in foreign territories. The bank has now confirmed that it helped over 88 exchanges as well as 85 ICO platforms exit the market risk-free since the announcement of the ban.
Because China was once one of the leading markets for Bitcoin trades, the ban is seen by some as a direct cause for Bitcoin’s price declines and stabilization, as it led the cryptocurrency to fall to current levels where it has stayed without being hit by any fast upticks or drops. By that logic, even a minor lift of the ban is expected to be a big catalyst for Bitcoin price increases.